PAN Card is an essential documents for all types of financial transactions in India. Just like Aadhaar works as your identity and address proof, the PAN Card makes it effortless to execute financial transactions of different types.

For PAN Card Holders, Avoid Penalty of ₹10,000 With These Steps

Transactions for Which PAN Card is Necessary:

Buying and selling of motor vehicles.
Bank account opening.
Applying for a Credit or Debit Card.
Demat account opening.
Paying a one-time bill of any kind exceeding ₹50,000.
Buying investment products like mutual funds, bonds, or debts valued at more than ₹50,000.
Depositing more than ₹50,000 cash in a bank account.
And there are many more.

What Happens if You Lost Your PAN Card?

As important as your PAN Card, you never want to lose it. Carrying this document everywhere with you increases the chance of losing it. Let me tell you the toll it will take. A fine of ₹10,000 might need to be paid in some cases a person has two PAN Cards. This will count as a misuse of this essential document produced by the income tax department, which carries a 10-digit unique ID for every Indian citizen. As per the law, a person should have only one PAN Card activated at a time. After finding the truth, the I-T department will cancel the document and will impose a fine on you.

Also, “A person who provides inaccurate PAN information may be penalized Rs 10,000 by the I-T Department. This provision is particularly important at the time of filing the Income Tax Return (ITR) form or in other scenarios where PAN card details need to be entered,” mentioned by DNA India.

So, if you have two PAN Cards issued, you must hand over one to the Income Tax Department. This will not get you in any type of legal trouble if you submit it willingly.

Also read:
Want Income Tax Benefits? Invest in These Five 5 Post Office Savings Schemes

Here’s How You Can Surrender Your PAN Card:

First, visit the official website.
Now click on ‘Request for new PAN card/change’, or ‘Correction PAN data.’
Next, download the form, fill it up and submit the form to any National Securities Depository Limited (NSDL) office.